*** GM was stolen from the bondholders when they went bankrupt. When you buy a car from GM, you are effectively buying a stolen car. ***
Correct me if I’m wrong, but here’s how I remember it in straight forward terms:
GM filed for bankruptcy;
Obama fired the CEO and put his own CEO in place;
Obama ordered that the stockholders get only 25 cents on the dollar for their investments - take it or leave with only a few days to decide;
Obama gave the UAW over 50% control of GM;
giant GM emerged from bankruptcy in only one week.
I don’t recall the precise details but the stockholders should have gotten nothing since there was not enough value to pay off the bondholders. The bond holders should have gotten whatever was left and control of the company. The UAW should have gotten nothing.
Instead the UAW and shareholders received less than they should, and the bondholders much less than they should have. Obama put pressure on the bondholders to accept his terms.
It was totally against contract law and people should have refused to buy any corporate bonds.